56.7M 141.1% 124.7% (8 contracts did not meet the goal by an aggregate of $2.2M) (10 contracts did not meet the goal by an aggregate of $.6M) 157.6M 116.6% (8 contracts did not meet the goal by an aggregate of $.6M) Subj: ADDITIONAL INFORMATION FOR 10 APRIL 1984 HEARING ON SUBCONTRACTING Encl: 1. (1) Information on nine Navy contracts identified by Committee (3) Information on military recruitment advertising contracts Enclosures (1) through (3) are submitted for forwarding to the House Committee on Small Business. The additional information was requested for the 10 April 1984 hearing on subcontracting. N. HANSON By direction Information Requested by (Committee Letter of April 16, 1984) A Fact Sheet is attached on each of the nine contracts identified by the Committee and includes the explanation as to why the contracting officers determined the goals were sufficient. With regard to the inferences that small disadvantaged business goals are omitted more frequently than small business goals from subcontracting plans and that goals for small disadvantaged firms are being set at much too low a level, the following is provided: (a) Based on a survey of the Navy's major contracting activities, including those that awarded the nine contracts described, these inferences have not been substantiated. (b) Our findings indicate that both small and small disadvantaged business goals are being included in subcontracting plans as required and there is no indication that either are being omitted. (c) Admittedly, small disadvantaged business goals are generally set at a lower level than that for small business. This can be attributed to a smaller number of available sources and to the dearth of high technology producers of sophisticated defense hardware among the small disadvantaged business community. Navy Command & Control Systems (NCCS) Software Development and Life Cycle Support 5. Brief narrative explaining why the contracting officer determined the goals were sufficient: The software development effort required specialized experience on a Honeywell system. Further, because of the nature of the work involved, a special, high-level security clearance was required even during the early stages of contract performance. The availability of small disadvantaged business firms that could meet these requirements in the required time frame was uncertain and considered negligible or non-existant at the time of contract award. Although some subcontracts have been awarded to small disadvantaged business firms since the prime contract was awarded, because of the factors noted, the goals were considered reasonable at the time of award. FACT SHEET Small Business and Small Disadvantaged Business Subcontracting Plan Goals 1. Contractor: GTE Products Corp, Sylvania Systems Group, Western Division 2. Contractor address (City, State): Mountain View, CA 3. Contract No: NO0039-82-C-0030 4. Brief description of supplies or services: AN/WLQ-4 Submarine Based, Automated Electronic Warfare Support Measures System (SEA NYMPH Production Program) 5. Brief narrative explaining why the contracting officer determined the goals were sufficient: The SEA NYMPH Program is, and has always been, a highly classified and accelerated program due to national urgency. Contract N00039-82-C-0030 is the sixth fiscal year production buy of the AN/WLQ-4. Subcontracting sources were established during development and early production contracts. Therefore, the contracting officer accepted and determined as sufficient the proposed small business and small disadvantaged business subcontracting goals based on historical considerations. |